DIGITAL OVERVIEW MAY 2018

GLOBAL INTERNET USERS HAVE NOW PASSED THE FOUR BILLION MARK SOURCE: The Global Digital Report 2018 (we are social)

MEDIA LANDSCAPE TIMELINE Nearly two hundred years ago we saw the first newspapers published – to this day they still form an important part of media. Between the 1830’s to 1960’s billboards, Radio and Television were introduced, then came the internet and the acceleration of technology. As the older millennials were hitting their young adult years, the technology evolution got kick started with the launch of google in 1998….

The reliance on mobile phones has caused some (most) people THE CRITICAL YEARS FOR TECHNOLOGY Between 1998-2007 there were numerous platforms and technologies released. Today, we cannot imagine life without them. GOOGLE started in 1998 and since then we have witnessed a technological revolution, which is still changing at an exponential rate. Wi-Fi – would you choose a hotel without free internet? iPod/iTunes – would you travel without music? Phones with Camera – do you go on holiday with a camera or your phone? The release of the iPhone impacted the world, to the point that we now rely on a handheld device for most things, and many of us might admit that we cannot live without it. 1998 2000 2001 2003 2002 2004 2005 2006 1999 2007 The reliance on mobile phones has caused some (most) people to develop….

NOMOPHOBIA [noh-muh-foh-bee-uh] An abnormal, irrational fear of being without one’s mobile device, or of being unable to communicate using one’s mobile device.

Messenger Video Calling THE LAST TWO YEARS It’s hard to keep up with the fast-paced nature of technology nowadays. In the last 2 years, there have been countless tech moments that continue to shape our world and the ways in which we interact. Messenger Video Calling No need to sign up for a separate calling APP, all your friends are a click of a button Facebook Live Pokemon Go Messenger App A preferred way to message friends over text messaging Instagram Stories Share a moment in time with friends, that will then disappear in 24 hours Snapchat discover Facebook stories Snap Maps You got ‘snapped’ track your friends where ever they will go Uber EATS No more takeaway menus - ‘laziness’ has become more efficient 2015 2016 2017 Virtual Reality A new way to ‘game’ – the world just got infinitely bigger

9 IN 10 NEW ZEALANDERS ARE NOW INTERNET USERS SOURCE: The Global Digital Report 2017 (we are social)

MEDIA CHANNELS USED IN THE LAST 24 HOURS 62% are on Social Media channels 47% are watching videos 27% are listening to music 14% are watching free or paid TV 50% have read or views online news SOURCE: Nielsen CMI Q1 17 – Q4 17 SOURCE: Nielsen CMI Q4 2016 – Q3 2017 Nov ‘17 TV/Online Fused

AUDIENCES ARE NOW MORE DISTRACTED – LIVING MULTIPLE ONLINE LIVES! A typical modern audience – watching online video or listening to the radio, whilst reading/researching online, catching up on social media, browsing the newspaper.

HOW DO WE TARGET THEM? Video (smart TVs) Radio Social Media Print -Facebook, Twitter, Instagram across all our news, sport and entertainment brands Online -Grabone, Restaurant Hub, RateBroker, Driven, Bite, Viva, nzherald.co.nz, Radio websites, Spy, WatchMe, Chinese Herald and our NZH & iHeart APPs Radio -ZM -The Hits -Hauraki -Coast -Flava -Newstalk ZB -Radio Sport -iHeart Radio Video (smart TVs) -WatchMe -Herald Focus -Herald Features -Video content throughout our brand websites Print -The NZ Herald (North Island) -The NZ Herald NIMs -Regional Newspapers (North Island) -Print partnerships (ODT) -NZME Communities

WHEN CAN WE TARGET THEM? Online is the most popular media across the day, peaking in the evening, with a total of 72% using the internet between 6pm-8pm TV has lost popularity in the evening with this group. A high number now have a subscriptions to Netflix or other similar services Radio is the 2nd most popular morning media, reaching over 30% during the morning commute SOURCE: Nielsen CMI Q1 2017 – Q4 2017 Mat ‘18 TV/Online Fused

ONLINE CONSUMPTION Social Media is the most popular online media across the day, peaking in the morning with fairly consistent use across the day. With kiwis now having a subscriptions to Netflix or other similar services, we have seen online TV/Video rise. Reading News online plays an important role online in the morning, for some replacing newspapers and TV to get their updates. SOURCE: Nielsen CMI Q1 2017 – Q4 2017 Mat ‘18 TV/Online Fused

NZME - REGIONAL DIGITAL MAY 2018

NZME REGIONAL NETWORK NZME publish 13 regional news websites, all with highly engaged and loyal local audiences These sites are the leading local news websites in their regions Local Content - engaging, live and updated as it happens Within the nzherald.co.nz network Trusted local news source Providing a voice for local residents SOURCE: Nielsen CMI Q4 2016 – Q3 2017 Nov ‘17 TV/Online Fused

ADD DIGITAL TO PRINT The Benefits: Extend the REACH of your print advertising Online ads are cost effective, with high frequency and mass reach Animated ads can showcase multiple products Highly engaged audience, meaning your ads are (on average) on the page for over 1 minute and 30 seconds! Trademe is just 0.15 seconds. By not selling digital, you are limiting the clients reach and campaign success High visibility of the clients ad on Regional Desktop and Mobile The new Fixed Tenancy rate card offers greater reach, frequency and more page impressions than a CPM buy SOURCE: Nielsen CMI Q4 2016 – Q3 2017 Nov ‘17 TV/Online Fused

OPTION 1 – THE MARKETPLACE The Marketplace is Image and Text ad, that is cost effective offering mass reach Located at the bottom of the desktop and for the first time, on the Mobile versions of each regional news website 18 positions available per regional site Sold per month OR, book for 12 months and receive a 50% discount Copy can be changed max once per month The Marketplace ads rotate on page load The ad clicks thru to the clients website SOURCE: Nielsen CMI Q4 2016 – Q3 2017 Nov ‘17 TV/Online Fused

OPTION 2 – DISPLAY PACK 320x50 The top Banner (760x120) and Headline Rectangle (300x250) will ROADBLOCK to appear together on the same page The Mobile Banner (320x50) will appear on the mobile version of the site The client will receive all 3 ad units. Available on all regional publications on either 25% or 100% share of the total impressions per week (site dependent) 760x120 300x250 SOURCE: Nielsen CMI Q4 2016 – Q3 2017 Nov ‘17 TV/Online Fused

OPTION 3 – THE BILLBOARD Headline Rectangle 300x250 Billboard (970x250) Perfect for local business that would like big impact advertising Ideal for store opening's, events, Christmas, Fathers Day and any other key sales periods Available on 6 regional publications 100% SOV of the Billboard and Headline Rectangle, site wide, on all pages on the desktop 100% SOV of Banner (320x50) on mobile Live one week, Monday to Sunday Pressing the Close button will leave behind the desktop Banner (760x120) 4 ad units for each SOV buy Banner 320x50 SOURCE: Nielsen CMI Q4 2016 – Q3 2017 Nov ‘17 TV/Online Fused

RATECARD SOURCE: Nielsen CMI Q4 2016 – Q3 2017 Nov ‘17 TV/Online Fused

THE JARGON Unique Browser = Browsers, counts all browsers used to access the site i.e. one person accesses nzherald.co.nz on their phone, tablet and desktop – counts as three unique browsers Unique Audience = People, counts one person unduplicated across all devices i.e. one person accesses nzherald.co.nz across all three devices – counts as one Page Impression = A webpage that is loaded Fixed Tenancy = A fixed price paid for a set period of time, for an unsecured amount of page impressions SOV = Share of Inventory / Voice. The approx. % of the total Impressions that your client will receive each week Display = refers to any ad unit on a website that can be animated or static and it not a text based ad Click = An ad can be clicked on to visit the clients website CPM = Cost Per Thousand. The way we used to sell Regional Display ads Roadblock = When two or more display ads appear on the same page together SOURCE: Nielsen CMI Q4 2016 – Q3 2017 Nov ‘17 TV/Online Fused

FOCUS ON ROTORUA NZME DIGITAL – MAY 2018

ROTORUA AUDIENCE 50,000 people live in ROTORUA Nearly two thirds are homeowners, with a third own their home mortgage free. Average household income is $91,071 For those who are currently working full time their average personal income $68K Only 58% of those in Rotorua are in paid employment, 73% of those currently working are in full time employment Rotorua’s population skews younger than the rest of New Zealand – Over a quarter of the population identify as Maori The top three types of employment in Rotorua are: 1. Agriculture/forestry/fishing 2. Health care/social assistance 3. Retail Trade SOURCE: Nielsen CMI Fused Q2 17 – Q1 18 *base those based in Rotorua

NZME REACH 45,000 92% OF KIWIS IN ROTORUA MEDIA CONSUMPTION 43% 64% NZME RADIO REACH – 43% NZME PRINT REACH – 64% NZME DIGITAL REACH – 63% SOURCE: Nielsen CMI Fused Q2 17 – Q1 18 *base those based in Rotorua

THEIR MEDIA DAY Online is the most popular media across the day, peaking in the evening, nearly 8 out 10 go online between 6pm and 8pm TV is popular in the evenings, however when watching their favourite programme, 63% are using other media – i.e. texting friends or going online Over half start their day with Radio with nearly as many going online at breakfast time A third are starting their day with a Newspaper making newspapers the third most popular media across the work day SOURCE: Nielsen CMI Fused Q2 17 – Q1 18 *base those based in Rotorua

Reaches 24,000 of those in Rotorua ROTORUA DAILY POST Digital Audience The Daily Post newspaper reaches 28,000 people across a week, and 18,000 people in Rotorua alone + Rotorua Weekender Monthly Unique Audience* for nzherald.co.nz/rotorua-daily-post -80,000 Average Weekly Unique Browsers** for nzherald.co.nz/rotorua-daily-post -62,000 Average Weekly Page Impressions** for nzherald.co.nz/rotorua-daily-post -181,800 Reaches 24,000 of those in Rotorua Combined with Daily Post reach 30,000 of those in Rotorua SOURCE: Nielsen CMI Fused Q2 17 – Q1 18 AP15+ *Nielsen Online Ratings May 2017 **Nielsen Market Intelligence Domestic Traffic May 2018

ROTORUA RADIO SURVEY HEADLINES

44,000 22,000 RADIO - ROTORUA REACHES 90% of Kiwis Across Radio, Print, Desktop & Mobile NZME Radio Brands Reach 22,000 New Zealanders across Radio, Desktop & Mobile 749,000* Registered Users Over 2.8 Million** Listening hours each month SOURCE: Nielsen Fused Q1 17 – Q4 17 Jan 18 TV/Online – NZME *iHeart Media 2018 ** Stream Guys 2018

Rotorua Daily Post & Rotorua Weekender – 30,000 NORTHLAND NZME REACH EXAMPLE + Radio Reach + Digital Reach Print Reach 83% of Kiwis based in Rotorua Rotorua Daily Post & Rotorua Weekender – 30,000 + Coast & The Hits 32,000 + nzherald.co.nz 38,000 SOURCE: Nielsen CMI Fused Q2 17 – Q1 18 *base those based in Rotorua 15+